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Keppel Corporation (KPELY)
OTHER OTC:KPELY
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Keppel
(OTC:KPELY)
Select Model
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Rating:73Outperform
Price Target:
$15.50
â–²(9.70% Upside)
Keppel's overall stock score is driven by strong technical indicators and a positive earnings call outlook, highlighting robust net profit growth and strategic asset monetization. While financial performance shows operational stability, liquidity challenges and revenue volatility pose risks. The valuation remains fair, with an attractive dividend yield supporting the score.
Keppel (KPELY) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$12.18B
Dividend Yield3.78%
Average Volume (3M)2.13K
Price to Earnings (P/E)16.4
Beta (1Y)0.44
Revenue Growth1.15%
EPS Growth36.91%
CountryUS
Employees5,249
SectorIndustrials
Sector Strength72
IndustryConglomerates
Share Statistics
EPS (TTM)0.37
Shares Outstanding910,278,900
10 Day Avg. Volume3,426
30 Day Avg. Volume2,127
Financial Highlights & Ratios
PEG Ratio-0.16
Price to Book (P/B)1.07
Price to Sales (P/S)1.81
P/FCF Ratio-28.99
Enterprise Value/Market Cap1.56
Enterprise Value/Revenue6.20
Enterprise Value/Gross Profit19.89
Enterprise Value/Ebitda31.73
Forecast
1Y Price Target
$15.50Price Target Upside9.70% Upside
Rating ConsensusModerate Buy
Number of Analyst Covering0
Keppel Business Overview & Revenue Model
Company DescriptionKeppel Corporation Limited (KPELY) is a Singapore-based multinational company with a diversified portfolio spanning various sectors including offshore and marine, property, infrastructure, and investments. The company is known for its innovative solutions in the energy and environmental sectors, as well as its development of residential and commercial properties. Keppel's core services include rig building, ship repair, and marine engineering, alongside the development and management of sustainable urban solutions.
How the Company Makes MoneyKeppel makes money through several key revenue streams. The offshore and marine segment generates income primarily from the construction and repair of rigs and vessels, as well as providing engineering solutions for the oil and gas industry. The property division contributes through the sale and rental of residential and commercial properties, both locally and internationally. Infrastructure projects, such as power and environmental services, also provide revenue through long-term contracts and partnerships. Additionally, Keppel engages in strategic investments which yield returns through dividends and capital appreciation. The company benefits from strategic alliances and partnerships in various sectors, enhancing its market reach and operational capabilities.
Keppel Earnings Call Summary
Earnings Call Date:Jul 30, 2025
(Q2-2025)
| % Change Since: |
Next Earnings Date:Jan 22, 2026
Earnings Call Sentiment Positive
The earnings call reflected a positive outlook with strong growth in funds under management and net profit, successful asset monetization, and promising developments in infrastructure and digital projects. However, challenges remain in the non-core portfolio, connectivity segment, and senior living business.Q2-2025 Updates
Positive Updates
Record-Breaking Funds Under Management
Keppel Ltd is recognized as a trusted investment partner with $91 billion in funds under management as of June 2025.
Strong Net Profit Growth
The New Keppel's net profit surged by about 25% year-on-year to $431 million.
Asset Monetization Success
Keppel announced $7.8 billion in asset monetization to date since October 2020, contributing to capital-efficient growth.
Infrastructure Division Growth
Net profit from the Infrastructure division rose 8% year-on-year to $333 million, with an EBITDA growth of 7%.
Strategic Partnerships and Global Recognition
Keppel sealed a strategic partnership with AIIB to mobilize up to USD 1.5 billion and was ranked the fourth largest infrastructure manager in Asia Pacific.
Innovative Digital Infrastructure Projects
Significant progress in developing the Bifrost Cable System and the floating data center project, targeting completion by 2028.
Negative Updates
Non-Core Portfolio Losses
The non-core portfolio incurred a net loss of $53 million in first half 2025, compared to a net loss of $41 million in first half 2024.
Connectivity Segment Decline
Net profit from the Connectivity segment was 19% lower year-on-year, at $57 million compared to $70 million in first half 2024.
Challenges in Senior Living Business
The senior living business continued to incur losses due to ongoing incubation and acquisition of Watermark in the U.S.
Competitive Pressure in Telco Market
M1, part of Keppel's Connectivity segment, is facing a severely competitive telco market in Singapore, affecting its consumer business.
Company Guidance
During the call, Keppel Ltd provided detailed guidance on its financial performance and strategic direction for the first half of 2025. The company reported a robust net profit of $431 million for the New Keppel, marking a 25% increase year-on-year, and achieved a 15.4% annualized ROE, up from 13.2% in the previous year. Keppel's funds under management (FUM) reached $91 billion by the end of June 2025, with $7.8 billion in asset monetization announced since October 2020. The non-core portfolio, carrying a value of $14.4 billion, incurred a net loss of $53 million, but the all-in net profit increased by 24% to $378 million. The Infrastructure segment reported a net profit of $333 million, up 8% year-on-year, while the Connectivity segment faced a 19% decrease in net profit to $57 million. Keppel also announced an interim cash dividend of $0.15 per share and launched a $500 million Share Buyback Programme. The company continues to focus on its asset-light strategy and aims to significantly monetize its non-core assets by 2030, while also driving growth in digital and sustainable urban infrastructure sectors.Keppel Financial Statement Overview
Summary
Keppel demonstrates a stable operational foundation with consistent profit margins and operational efficiency. However, volatility in net income and revenue growth, along with cash flow challenges, particularly in maintaining positive free cash flow, suggest potential liquidity constraints.Income Statement
Keppel shows a mixed performance with a consistent gross profit margin around 28% to 30% over the years. However, the net profit margin experienced significant volatility, peaking in 2023 due to a one-time income boost, but generally stable otherwise. Revenue growth was inconsistent, with a decline in 2021 and a slight recovery in 2023. EBIT and EBITDA margins remained relatively stable, indicating operational efficiency.72
Positive
Balance Sheet
Keppel maintains a moderate debt-to-equity ratio, fluctuating around 1.0, indicating balanced financial leverage. The company’s ROE is strong, particularly in 2023, due to high net income, but less impressive in other years. Equity ratio remains stable, showcasing a solid equity base relative to total assets, though slightly decreasing over time.65
Positive
Cash Flow
Cash flow performance presents concerns with negative free cash flow across most years, signaling potential liquidity issues. Operating cash flow to net income ratio demonstrates inconsistency, with negative ratios in some years, highlighting cash flow challenges. However, there is a positive trend in free cash flow to net income ratio, indicating some improvement in cash conversion.58
Neutral
| Breakdown | TTM | Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 | Dec 2020 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 3.06B | 6.60B | 6.97B | 6.62B | 6.61B | 6.57B |
| Gross Profit | 953.32M | 1.86B | 1.96B | 1.45B | 1.53B | 1.98B |
| EBITDA | 597.39M | 1.73B | 1.76B | 541.07M | 525.77M | 450.91M |
| Net Income | 383.39M | 951.72M | 4.08B | 938.22M | 1.03B | -508.09M |
Balance Sheet | ||||||
| Total Assets | 27.72B | 27.66B | 26.84B | 31.06B | 32.32B | 32.11B |
| Cash, Cash Equivalents and Short-Term Investments | 1.94B | 2.45B | 1.50B | 1.08B | 3.35B | 2.28B |
| Total Debt | 11.69B | 12.07B | 11.54B | 10.38B | 12.02B | 12.60B |
| Total Liabilities | 16.75B | 16.23B | 15.82B | 19.15B | 19.88B | 20.95B |
| Stockholders Equity | 10.62B | 11.16B | 10.31B | 11.58B | 12.06B | 10.73B |
Cash Flow | ||||||
| Free Cash Flow | -9.92M | -411.07M | -862.66M | -436.62M | -813.92M | -282.00M |
| Operating Cash Flow | 219.38M | 200.34M | 58.43M | 259.59M | -275.56M | 202.45M |
| Investing Cash Flow | -484.40M | 700.93M | -942.71M | -667.28M | 2.03B | -274.10M |
| Financing Cash Flow | -147.05M | 136.60M | 722.94M | -1.52B | -668.13M | 712.66M |
Keppel Technical Analysis
Positive
14.13
Price Trends
13.31
Positive
12.26
Positive
10.88
Positive
Market Momentum
0.14
Negative
56.08
Neutral
71.99
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For KPELY, the sentiment is Positive. The current price of 14.13 is above the 20-day moving average (MA) of 13.53, above the 50-day MA of 13.31, and above the 200-day MA of 10.88, indicating a bullish trend. The MACD of 0.14 indicates Negative momentum. The RSI at 56.08 is Neutral, neither overbought nor oversold. The STOCH value of 71.99 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for KPELY.
Keppel Peers Comparison
UnderperformOutperform
Sector (63)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
78 Outperform | $7.75B | 36.57 | 14.24% | 0.67% | -0.15% | 24.55% | |
74 Outperform | $133.97B | 23.99 | 35.52% | 2.16% | 7.16% | 0.21% | |
73 Outperform | $12.18B | 16.39 | 8.67% | 3.78% | 1.15% | 36.91% | |
65 Neutral | $3.61B | 57.86 | 109.49% | 0.92% | -3.37% | -61.83% | |
60 Neutral | $501.82M | -4.83 | 0.99% | 14.86% | 6.77% | 9.95% | |
54 Neutral | $3.61B | 16.81 | 7.89% | 2.99% | -40.60% | -47.10% | |
63 Neutral | $10.79B | 15.43 | 7.44% | 2.01% | 2.89% | -14.66% |
* Industrials Sector Average
KPELY
Keppel
14.13
4.00
39.49%
MMM
3M
158.66
26.03
19.63%
HON
Honeywell International
209.05
9.41
4.71%
VMI
Valmont
394.62
106.43
36.93%
Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
Disclaimer
This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.